Why you need optional car insurance benefits

a hand signs a form with a car in the background
Posted with permission from gironeslawyers.com

Several changes to the Ontario Accident Benefits regime in recent years have meant that you do need many of the optional benefits offered by your car insurance company. Because these optional increases cost more money, many people opt not to purchase them. Unfortunately, it is only after they are injured in a car accident that people realize why the optional benefits are important.

Let’s first look at Income Replacement Benefits. If you do not purchase this additional coverage, your benefits – should you be injured and unable to work – will be 70% of your gross income to a maximum of $400/week. That’s only $20,800.00 per year. If you do not have any disability insurance, either privately or through work, then you should opt to increase these payments.

You don’t want to be overinsured either. If you have good disability insurance, you will not need to buy additional income replacement benefits. Income replacement benefits are net of disability benefits so you only get one benefit or the other, not both.

If you are self-employed and run a lot of expenses through your business to reduce your income, do not purchase optional benefits. Consider a good long term disability policy instead.

There are also optional benefits for housekeeping help and attendant care. These are very important if you do not work outside the home and care for dependants. Please review these options with your insurance company/broker prior to finalizing your automobile policy this year.

Andrea Girones
Written by

Andrea has been helping victims of accidents and medical malpractice navigate the legal system to find compensation for their losses for almost 20 years. Andrea holds a Bachelor of Laws degree from the University of British Columbia and an MBA degree from the University of Toronto.

She is a member of the Ontario Trial Lawyers Association, the Advocates Society, and the County of Carleton Law Association. Andrea also sits on several local Boards and Executive Committees and is the current President of the West Carleton Skating Club located in Carp, Ontario.